1. Introduction to Business H R MANAGEMENT

2. Human Resource Management (HRM)  Human Resource Management is an area that deals with people who work in organizations.  HRM deals with the activities of people.  These Include: Attracting people in the organization Maintaining them Recruitment Selection

3. Human Resource Management (HRM)  HRM deals with the activities of people.  These Include: Training Performance appraisals Compensation Health and Safety

4. Scope of HRM  Human Resource Panning Type of people required When required How many people required  Job Analysis  Recruitment  Training  Compensation  Health and Safety  Labor Union

5. Job Analysis  Collecting all the information related to a job.  It is divided into two parts: Job Description Job Specification  Job description describes the activities of a particular job.  It includes: Job Title Job Location Job duties Working Environment Supervision

6. Job Analysis  Job Specification describes human skills required to perform a job.  It includes: Qualification Gender Age Experience Special Skills Attitude

7. Human Resource Planning  Sources to find people Internal Sources External Sources

8. Human Resource Planning  Skills Inventory A chart that shows skills of workers in the organization.  Replacement Chart A chart that shows employees turnover in an organization.

9. Turnover Rate  Tendency to leave jobs in an organization.  Expansion Plans..  Replacement on the basis of performance.

10. Recruitment  The process of attracting the people for the job.  Advantage of recruitment within the organization People are already trained.

11. Recruitment  Advantages of recruitment outside the organization Variety of Talent Variety of Abilities Variety of Qualifications  Equal Employment Opportunity No discrimination on any grounds for hiring people.

12. Sources to find People  Informal Search This method is used when reference is also required.  Job Posting Putting notices for job on various places in the organization Places can be: ○ Cafeteria ○ Fair Price Shop ○ Sports Field

13. Sources to find People  Job Posting Putting notices for job on various places in the organization Places can be: ○ Reception Desk ○ Notice Board ○ Union Office

14. Sources to find People  Educational Institutions Consulting educational institutions for suitable candidates for the job. Educational Institutes are consulted when: ○ Fresh Graduates are required. ○ There are not many institutions for a particular job. Short Listing of institutions. Organizations involve teachers in the selection process.

15. Sources to find People  Recruitment Agencies These are the organizations which have expertise in selecting people. These agencies are used when: ○ Time span for selection is short. ○ Jobs are highly technical in nature. ○ Employer and employee are at a distant place.

16. Sources to find People  Advertisement Giving advertisement in media. Media is used when: ○ Large number of jobs are available.  Disadvantages of using media Large number of applications are received. It is difficult to handle large number of applications.

17. Selection  The most important stage in HRM process.  It includes: Filling up forms Interviewing people Developing tests  Application Blank A form designed by the employer for the prospective employee to fill it out. It records data according to the requirement of the organization.

18. Selection  Test and Interview Use of test and interview depends upon the nature and level of the job.  Types of Tests Achievement Test ○ Test of knowledge acquired by the candidates in educational institutions. Psychological Test ○ To determine the attitude of the candidates.

19. Selection  Types of Tests Skills Test Medical Test ○ To keep in record the physical condition of the candidate before joining the organization. ○ To make sure that candidate does not have any transferable disease.

20. Selection  Considerations for Test Development Validity Reliability  Validity Content Validity ○ Contents of the test should be relevant to the requirement. Construct Validity ○ Sequence of the questions. Face Validity ○ Appearance of the test.

21. Infrastructure for Test  Space  Proper Temperature  Enough Quantity of Stationary  Evaluation of Test

22. Job Interview  Job Interview A method of selection in which we interact with the candidate verbally.

23. Types of Job Interview  Telephonic Interviews  Preliminary Interviews  Selection Interviews

24. Techniques for Final Interviews  Pattern Interview Pre-decided questions are asked in a pre- defined sequence.  Non Pattern Interview Questions are asked according to the situation

25. Shortcoming of Pattern Interview  Interviewer can not ask any question other than pre-defined questions.

26. Shortcoming of Non Pattern Interview  Possibility of non-professional and irrelevant questions.

27. Mix Interview  An interview in which some questions are pre-defined and some are situational.

28. Ways to conduct Interview  One person interview  Panel Interview A group of people related to the job conduct interview.

29. Arrangements for conducting Interview  Proper place  Preparation for questions  Read out the resumes of candidates.

30. Human Resource Development  Human Resource Development is done through training.

31. Methods for Training  On job Training Learning while working  Off job Training

32. Difficulties in On Job Training  In certain jobs, on job training is not possible.

33. Methods for Off Job Training  Lectures  Vestibule training Artificial situation created for training people.  Business Games  Case Studies

34. Performance Appraisals  Evaluation of performance  Reasons for performance appraisals Validation of Human Resource Program Pay for performance

35. Compensation  Compensation can be: Monetary reward Non Monetary reward  Incentives Plans for encouragement of employees in the organization.

36. Types of Incentives  Organizational Level Incentives  Incentives for the whole organization can be: Profit Sharing.  Individual Incentives Paid to individual employees who have done good job.

37. Collective Incentives  Incentives are paid to whole department.  Benefits other than salaries and wages.

38. Compensation  Salary is paid for longer period. e.g. for a week, for a fortnight, for a month or for a year.  Wages are paid for short term period. e.g. for a day or for an hour.

39. Compensation  Other ways for compensation can be: Free or cheaper food. Retirement Plans. Medical Facilities. Transportation Facilities. Assistance for children education.

40. Equal Employment Opportunity (E.E.O)  No employee on any base will be discriminated for offering job opportunities.  Base can be: Gender Nationality Religion Area Life Style Race

41. Equal Employment Opportunity (E.E.O)  In many countries, it is against the law and ethics.  Managers should not evaluate performance on the basis of: Gender Nationality Race Religion

42. Why do we need Equal Employment Opportunity (E.E.O)?

43.  Job description does not provide any base for discrimination.  If law requires, we have to obey the law.  Research has shown, variety of people can perform better in an organization. This phenomenon is called Work Force Diversity.  Managers should encourage different types of people to join organization in order to enhance productivity.

44. Collective Affairs of Employees  Employees form labor unions in the organization.  There could be more than one labor organizations in the company.  Collective Bargaining agent (CBA) is a person who has been elected by all the workers in the organization through legal procedures.

45. Collective Affairs of Employees  Negotiations can be on: Salary Working Conditions Timings Facilities Benefits Attitudes

46. Motivation  Motivation is a force that forces people towards a task.  Classical Theory of Motivation People are motivated because of money.

47. Motivation  Fredrick Taylor’s Theory of Scientific Management Every job should be studied Scientifically. Jobs should be divided on the basis of tasks. Pay should be attached with productivity.  Time & Motion Studies Time spent on jobs should be studied using scientific devices and human motions.

48. Objection on Fredrick Taylor’s Theory of Scientific Management  This theory considers human beings as machines.  Shortcoming of Fredrick Taylor’s theory was that human moods, human behavior, human liking and disliking and human interest were ignored.

49. Motivation  Hawthorn Studies  The Hawthorne studies were carried out by the Western Electric company at their Hawthorne plant in the 1920's. Basic purpose of these studies was “Effect of light on productivity”. Productivity depends upon human relations. Hawthorn Studies became a base for behavioral studies in organizations.

50. McGregor Theory - X  Every normal human being dislikes work by nature.  People work because of some pressure.  Pressure can be: Salary Advancement Respect Some other force

51. McGregor Theory - Y  People inherently like to work.

52. McGregor Theory – X & Y  X-Type managers might: Use punishment and threat to make people work. Control activities of the work very closely.  Y-Type managers will identify the barriers which are causing problems for workers and try to eliminate those barriers.

53. McGregor Theory – X & Y  In some situations, managers have to adopt X-type behavior and in some situations, they have to adopt Y-type behavior.  Culturally, in societies, managers are moving towards Y-type behavior from X- type behavior.  Why do People work? Need ○ A state of felt deprivation.

54. Maslow’s Hierarchy Of Needs

55. 1. Biological Needs Biological needs are related to human body’s survival. e.g. food, drink, air, sleep etc. 2. Safety Needs Safety from: ○ Cold ○ Heat ○ Sand ○ Storm ○ Earthquake ○ Animals ○ Enemies

56. Maslow’s Hierarchy Of Needs 3. Social Needs 4. Self Esteem Worth attached by human beings to themselves. People who have high self esteem are more productive. 5. Self Actualization Fullest utilization of one’s potential.

57. Use of Hierarchy in Motivation  Biological needs can be fulfilled by: Giving salaries. Providing free or cheaper food to employees. Providing routine items at concessional prices. Safety Needs  Organization can provide safety devices to employees. For instance: Helmet Glasses Gloves

58. Use of Hierarchy in Motivation Safety Needs  Organization can provide safety devices to employees. For instance: Special purpose shoes Medical Facilities Houses House rent Pick & drop service Insurance Pension plans Preventing people from accidents

59. Use of Hierarchy in Motivation  Social Needs Organizations encourage informal organizational activities. These include: ○ Combined lunch or dinner ○ Sports ○ Fun fair ○ Musical Programs

60. Use of Hierarchy in Motivation Self Esteem  Worth of human beings.  These include: Designation of Individuals. Status in the organization. Recognition of employees in the organization.  Self esteem has direct relationship with productivity.

61. Use of Hierarchy in Motivation Self Esteem  Various techniques can be used to make self esteem of employees high. These can be: Finding titles for employees Recognition Awards Cash rewards Increment in the salary Promotion Raising status of employees

62. Use of Hierarchy in Motivation Self Actualization  Fullest utilization of one’s potential.  These include: High Challenges High position in the organization

63.  It is possible that human needs may deviate from the order given by Maslow.  There is a question mark whether needs finish after self actualization or not. Criticism on Maslow’s hierarchy theory

64. Two Factor Theory or Hygiene theory  Hertzberg presented this theory by taking the phenomenon of human hygiene.  Two factors work in the organization: Hygiene factors Motivators  Factors required to keep employees in the organization are called hygiene factors.  Factors used to get high productivity from workers are called motivators.

65. Two Factor Theory or Hygiene theory  Hygiene factors fall with the biological needs, safety needs and partially with social needs of Maslow’s hierarchy theory.  Motivators are almost similar to social needs, Self esteem needs and self actualization needs of Maslow’s hierarchy theory.  Both factors should be present in the organization at the same time to get productivity from workers.

66. Expectancy Theory  People in the organization are motivated with: Expectations about reward. Assurance of getting reward by doing a particular task.

67. Equity Theory  Equivalence in inputs and outcomes.  Inputs of employees in an organization are: Level of education Skills Experience Hard work Connections

68. Equity Theory  Outcomes of employees in an organization are: Salaries Promotions Benefits Respect in the organization Opportunities

69.  Individual will also compare his input/outcome with other individual’s input/outcome. Equity Theory

70. How can Equity Theory be implemented?  Managers have to explain reasons for the difference of outcomes of employees in order to keep them motivated.  People compare their rewards with the market as well.

71. Reinforcement Theory  To strengthen desired behavior at work place.  To force the workers to adopt that behavior.  There are two ways for reinforcement: Positive reinforcement Negative reinforcement  Positive reinforcement means to encourage a particular behavior.  Negative reinforcement means to discourage a particular behavior.

72. Human Relations  Human Relations can be: Employee to employee Employee to employer  Purpose of human relations is to give a feeling of a family.

73. Job Enrichment  This is needed when people are under performing.  Job enrichment means adding something into the job.  To provide opportunities to employees to apply their talent, knowledge and creativity for performing more in the organization. Job Re-designing  To re-design a task.

74. Job Sharing  People share the work. Management by Objective (MBO)  Idea of MBO is opposite to the traditional management.  Decision and planning is made in collaboration with the subordinates. Difficulties with MBO  People do not understand the philosophy of MBO. Application of MBO  Subordinates set their goals by themselves with the consultancy of top management.

75.  Leader  A person who influences people for the achievement of pre-defined goals.

76. Leadership  Ability of an individual to influence others. Difference between a leader and a manager LeaderManager Leader is a change agent. Manager is more concerned with the status co.

77. Leadership  Powers of leaders Position powers Personal powers  All those powers/authorities which are attached to a position are called position powers.  Position powers are transferable.  Powers attached with some person are called personal powers.  These are non transferable.

78. Types of leaders  Autocratic leaders Leaders who take decisions by themselves. This type of leadership is used in those circumstances when there is not much time for decision making. This type of leaders have more centralized powers. Managers take more powers when: ○ Managers do not trust their subordinates. ○ Subordinates might not have enough training.

79. Types of leaders Democratic Leaders  Democratic leaders share the ideas.  In this style, leaders will encourage more communication.

80. Free-Rein leaders  Managers depend more upon subordinates.  Encourage the subordinates to make decisions by themselves.  This approach is practiced when: Staff is highly motivated. Fully trained people. Types of leaders

81. Difference of communication in leadership styles  In autocracy, there will be downward communication but no upward communication. i.e. one way communication.  In democracy, there is both way communication. i.e. upward and downward communication.  In free rein, there will be more communication among subordinates and occasional communication among subordinates and managers.

82.  Method of decision making depends upon the situation.

83. Contingency approach of Leadership  Every job has its own uniqueness.  With the change in task, different type of leaders and different leadership style is required.